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2024 Supreme(Online)(KER) 2212

HIGH COURT OF KERALA
Devan Ramachandran, J
ANIL KUMAR S – Appellant
Versus
THE JOINT REGISTRAR (GENERAL) – Respondent
WP(C) 14349/2024



Statutory Arbitrators possess inherent power to reconsider ex-parte awards despite absence of explicit provisions in the governing legislation.

Headnote:

Arbitration - Ex-parte Awards - Kerala Co-operative Societies Act - Sections not specified - Court's Decision on Arbitrator's Authority

Fact of the Case:

Petitioners challenged the ex-parte awards issued by the statutory Arbitrator, claiming they had sought to set aside these awards through applications rejected as lacking statutory power.

Finding of the Court:

The court found that although the Arbitrator lacked express power to review the awards, they possess inherent jurisdiction to evaluate applications for setting aside ex-parte awards.

Issues: Whether the statutory Arbitrator has the power to consider setting aside ex-parte awards in the absence of specific provisions in the Act.

Ratio Decidendi: Inherent power of the Arbitrator is acknowledged to review and consider ex-parte awards despite the lack of express provisions in the relevant legislation.

Final Decision: The court allowed the writ petitions and directed the Arbitrators to reconsider the applications for setting aside ex-parte awards.

JUDGEMENT

The controversies in these cases which are being disposed of together adverting to the analogous circumstances pleaded and similarities of the reliefs sought – has its genesis in Awards, that have been issued by the competent statutory Arbitrator, however, ex-parte.

2. The petitioners say that they have applied for having the ex-parte decrees set aside through appropriate applications, filed under the provisions of the Code of Civil Procedure; but that they have been rejected through the impugned orders saying that there is no statutory power for the Arbitrator to consider the same or to allow it. They assert that this is contrary to the declarations of this Court in the judgment in Ramadevi & Others v. Joint Registrar (General) and Others.

3. The learned Senior Government Pleader – Smt.Mable C.Kurian, however, submitted that even though the statutory Arbitrator may have no power to review his own orders, it has now been well settled, through judicial pronouncements, that even in the absence of specific provisions in the Act, enabling the Arbitrator to set aside an award, he is vested with inherent power to maintain such an application to consider the same on its merits. She, therefore, left to this Court to issue appropriate orders.

4. I have no doubt that the law settled is as stated by the learned Government Pleader as afore. In fact, in Kerala State Co-operative Consumer Federation Ltd, Ernakulam v. K. Vasu and Others (2015 V (3) KLT 636) and in Joseph.A.R and others v. Co-oprative Arbitration Court, Kozhikode and others ( 2013 KHC 776 ), apart from Ramadevi (supra), this Court has already has declared in law to such effect, without any reason for further doubt.

5. When I examine the impugned orders, it is rendered limpid that the statutory Arbitrators have proceeded on the assumption that they have no power to even consider an application, filed by the applicants for setting aside ex-parte awards, there being no specific provision in the Kerala Co-operative Societies Act or the Rules thereunder for such purpose. However, they do not appear to have examined the precedents stated afore.

6. In the afore circumstances, with the consent of both sides, I allow these writ petitions and set aside the impugned orders; with a consequential direction to the statutory Arbitrators to re-consider the matter, adverting to the applications preferred by the petitioners and to the precedents afore cited and to be cited before him by the parties; thus culminating in appropriate fresh orders as expeditiously as is possible, but not later than two months from the date of receipt of a copy this judgment.

Needless to say, I have not entered into the merits of any of the rival contentions of the parties and that all of them are left open.

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